Columbia’s ELFA says US borrowing for equipment rises 21 per cent in August

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Columbia’s ELFA says US borrowing for equipment rises 21 per cent in August

On Thursday, the Equipment Leasing and Finance Association (ELFA) had issued a statement saying that US business borrowing for equipment, a critical gauge to future investments, had jumped by a whacking 21 per cent last month compared to the same time a year earlier, however, analysts expressed discontents over latest set of ELFA data citing a downgrade in borrowings compared to a month earlier alongside fading business optimism.

Meanwhile, citing that August data had depicted an ambivalent portrayed on US business optimism, ELFA Chief Executive Ralph Petta said in a statement, “August data show some softness in equipment demand resulting from a mix of summer doldrums, continued supply chain disruptions and lingering pandemic-related woes.

Business optimism, which peaked earlier in the summer, also has waned somewhat”.

US business borrowing for equipment leapt 21% in August

According to data from Washington DC-based ELFA, businesses had applied for a $8.5 billion in new debts, lines of credits alongside leases compared to a $7 billion logged at the same time a year earlier, borrowings declined 14 per cent from a month earlier, suggesting that a Summer-shine in business optimism had been clouded by some extent.

Aside from that, the Eye Street, Washington-headquartered ELFA that reports activities of a nearly $1-trillion equipment financing sector, had added in the statement that credit approvals fell marginally to 76.3 per cent in August, down from a 76.5 per cent registered in July.

ELFA’s survey for US business borrowings for equipment has been based on 25 member organizations including Bank of American Corp and CIT Groups Inc among others alongside affiliates or units of Caterpillar, Dell Technologies, Volvo AB, Siemens AG and Canon Inc.